Our look back at the week’s top news kicks off with quarterly financial reports from two leading parts retailers. Online parts retailer U.S. Auto Parts this week reported net sales for the second quarter ended July 2, of $84.3 million, up from net sales of $53.2 million in the second quarter of 2010. Excluding $24.8 million of revenues from the acquisition of J.C. Whitney, legacy net sales were $59.5 million, an increase of 11.8 percent over second quarter 2010 net sales. Gross profit for the second quarter of 2011 increased 54.5 percent from the second quarter of 2010. Excluding the acquisition of J.C. Whitney, gross profit was $20.2 million, an increase of 9.9 percent.
While Advance Auto Parts recently announced DIY home delivery, it is mostly bricks and motor sales that accounted for second quarter earnings per diluted share (EPS) of $1.46, a 26 percent increase over the second quarter last year. Total sales for the second quarter increased 4.4 percent to $1.48 billion, compared with total sales of $1.42 billion during the second quarter of fiscal 2010. The company said this sales increase reflects the net addition of 130 new stores during the past 12 months and a comparable store sales gain of 2.5 percent on top of a 5.8 percent comparable store sales gain during the second quarter of fiscal 2010.
Also highly read this week was our exclusive AMN Executive Interview with David Hirschhorn, director of brand management at CRP Automotive. In the interview, Hirschhorn provides details and insight into the company’s newest brand, Rein Automotive. Hirschhorn talks about the ongoing development of the Rein Automotive program and its role in CRP’s future growth.
In other news this week, Autologue Computer Systems Inc. has entered into an asset purchase agreement to acquire the Auto Cube Business Intelligence Application Software from GoTo Solutions in Cleveland, Ohio. According to Autologue CEO Jim Franco, the Auto Cube model uses a complete nightly data stream upload from any management system. "Now, every morning you will have meaningful data in multiple, graphical formats — i.e. column lists, pie charts, bar graphs, line graphs and even gauges, to produce a ‘dashboard-like’ presentation of your data,” Franco said. Autologue will offer Auto Cube to its current customer base, in addition to marketing the product to jobbers and WDs using any management system.
Last in our recap of the week’s most read news items, we remember import parts pioneer Louis L. Berg, founder and owner of IAP and Dura International. The AIA Hall of Fame award recipient passed away July 25 at his home in Savyon, Israel. He was 91. Over his 60-year career, the hard-driving Berg orchestrated the unparalleled evolution of his companies. Berg began his aftermarket career in 1957 as one of the first “grey market” importers of Volkswagens. In the late ’60s, he moved from an importer of vehicles to a leading specialty provider of import parts for air-cooled Volkswagens. In the ’70s and ’80s, Berg expanded the company into a successful all-makes import parts supplier. Then, in the ’90s, he transitioned the company into its current structure as a dominant supplier of quality brake drums and rotors for both domestic and import vehicles. Lou Berg was an astute entrepreneur known for his keen negotiating skills. His closest colleagues will always remember him for his relentless focus on inventory turns and ROI some 20 years before these became common metrics for aftermarket companies. To read more on Berg’s legacy, click here.
